Too bad you couldn't get some yesterday before today's 14% rally. I think if you continue to accumulate the dips and hold for the long term you'll do very well.
As an extremely undervalued zinc miner with one of the largest zinc deposits in the world along with very high-grade silver, MMG is definitely a Zip code changer. The 5 year LME zinc inventories paints the picture of why zinc mining is the place to be, as the inventories will be gone early next year if prices don't move explosively higher soon:
If he's right, in 3-4 years, MMG could be producing 400 million pounds of zinc a year at a cost of .25-.35/pound, and selling it for over $5 more than that. After a very short payback period of a few months, they could have free cash flow of $2 billion per year. Even assuming 100% dilution to move to production (50 mill. shares fully diluted goes to 100 mill. shares fully diluted) or a 50/50 joint venture with a partner providing financing, at just 4 x free cash flow, that would make it an $8 billion company, or an $80 stock. Plus there's all the high-grade silver and separate zinc.
Even if zinc drops back under $1 from the current $2+, MMG should be a huge winner, but the upside with zinc at $5 would be tremendous.
Now that it's listed on Amex, I think MMG is the only U.S. listed zinc junior miner (only 2 other zinc stocks AFAIK are listed in the U.S.--Teck Cominco, the largest zinc miner in the world, and LMC, listed last week after the merger of mid-tier producers EZM and Lundin). With the upcoming zinc explosion as the LME inventories become depleted, MMG's listing comes as a perfect time.
Until they complete the feasibility study and get to production, there will be lots of risk and volatility, but I'm keeping my eye on the big picture potential a few years out.
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